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Viewpoint: China's Digital Yuan Overtaking USD As Reserve Currency is "Still A Long Way To Go"
Summary: According to CNBC, David Roche, president and global strategist at Independent Strategy, says in the "Squawk Box Asia" conference that China's digital yuan still has a long way to go before it challenges USD's reserve currency status. Roche emphasizes: "It is very, very difficult to devalue the dollar". The euro tries to do so, but ...
According to CNBC, David Roche, president and global strategist at Independent Strategy, says in the "Squawk Box Asia" conference that China's digital yuan still has a long way to go before it challenges USD's reserve currency status.
Roche emphasizes: "It is very, very difficult to devalue the dollar". The euro tries to do so, but the euro only accounts for 18% to 20% of the total global trade. Compared to this, China's CNY accounts for 2% of international trade settlement (financial investment flows are not included).
Although the U.S. economy has been shrinking in the past 20 years, USD still accounts for an increasing proportion of international trade settlement. So Roche believes it will take a "very, very long time" for digital yuan to replace USD as a reserve currency.
By Mary Liu
Tags: China,CNY,Digital Yuan,Reserve Currency,USD
Link: Viewpoint: China's Digital Yuan Overtaking USD As Reserve Currency is "Still A Long Way To Go" [Copy]
